IN THE UNITED STATES DISTRICT COURT Plaintiff, v

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

Federal Trade Commission, Civ. Action No. 14-1608

Plaintiff, v.

First Consumers, LLC, et a!.,

Defendants.

[PROPOSED] PRELIMINARY INJUNCTION AGAINST DEFENDANTS FIRST CONSUMERS, LLC; STANDARD AMERICAN MARKETING INC.; POWERPLAY

INDUSTRIES, LLC; 1166519075 QuEBEC INC. D/B/A LANDSHARK HOLDINGS INC.; 1164047236 QUEBEC INC. D/B/A MAD I COM INC.; AND ARI TIETOLMAN

Plaintiff, the Federal Trade Commission ("FTC" or "Commission"), filed a Complaint for

Permanent Injunction and Other Equitable Relief pursuant to Sections 13(b) and 19 of the

Federal Trade Commission Act ("FTC Act"), 15 U.S.C. §§ 53(b) and 57b, and an Ex Parte

Motion for a Temporary Restraining Order and other relief pursuant to Rule 65 of the Federal

Rules of Civil Procedure ("Motion"). This Court having considered the Complaint, declarations,

exhibits, and memoranda, entered a Temporary Restraining Order on March 19, 2014. The

Court, having conducted a hearing to show cause why a preliminary injunction should not issue

and having considered the Complaint, declarations, exhibits, memoranda, and oral argument

presented by the parties, makes the following findings of fact and conclusions oflaw:

I.

FINDINGS

A. This Court has jurisdiction over the subject matter of this case, and there is good

cause to believe that it will have jurisdiction over defendants First Consumers, LLC; Standard

American Marketing Inc.; PowerPlay Industries, LLC; 1166519075 Quebec Inc. d/b/a Landshark

Holdings Inc.; 1164047236 Quebec Inc. d/b/a Madicom Inc.; and Ari Tietolman.

B. Venue is proper in this District.

C. The Commission has properly served process on defendants First Consumers,

LLC; Standard American Marketing Inc.; PowerPlay Industries, LLC; 1166519075 Quebec Inc.

d/b/a Landshark Holdings Inc.; 1164047236 Quebec Inc. d/b/a Madicom Inc.; and Ari

Tietolman.

D. Good cause exists to believe that defendants First Consumers, LLC; Standard

American Marketing Inc.; PowerPlay Industries, LLC; 1166519075 Quebec Inc. d/b/a Landshark

Holdings Inc.; 1164047236 Quebec Inc. d/b/a Madicom Inc.; and Ari Tietolman have engaged

in, and are likely to engage in, acts or practices that violate Section 5(a) of the FTC Act, 15

U.S.C. § 45(a), and the various provisions of the Telemarketing Sales Rule ("TSR"), 16 C.P.R.

Part 310, and that the FTC is likely to prevail on the merits of this action.

E. Good cause exists to believe that immediate and irreparable harm will result from

the ongoing violations of Section 5(a) of the FTC Act and the TSR by defendants First

Consumers, LLC; Standard American Marketing Inc.; PowerPlay Industries, LLC; 1166519075

Quebec Inc. d/b/a Landshark Holdings Inc.; 1164047236 Quebec Inc. d/b/a Madicom Inc.; and

Ari Tietolman unless defendants First Consumers, LLC; Standard American Marketing Inc.;

PowerPlay Industries, LLC; 1166519075 Quebec Inc. d/b/a Landshark Holdings Inc.;

1164047236 Quebec Inc. d/b/a Madicom Inc.; and Ari Tietolman are restrained and enjoined by

Order ofthis Court.

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F. Good cause exists to believe that immediate and irreparable damage to the Court's

ability to grant effective final relief for consumers (including monetary restitution, rescission,

disgorgement, or refunds) will occur from the sale, transfer, destruction, or other disposition or

concealment of the assets, documents, records, or other evidence of defendants First Consumers,

LLC; Standard American Marketing Inc.; PowerPlay Industries, LLC; 1166519075 Quebec Inc.

d/b/a Landshark Holdings Inc.; 1164047236 Quebec Inc. d/b/a Madicom Inc.; and Ari Tietolman

unless defendants First Consumers, LLC; Standard American Marketing Inc.; PowerPlay '

Industries, LLC; 1166519075 Quebec Inc. d/b/a Landshark Holdings Inc.; 1164047236 Quebec

Inc. d/b/a Madicom Inc.; and Ari Tietolman are restrained and enjoined by Order of this Court.

G. Good cause exists for freezing the assets of defendants First Consumers, LLC;

Standard American Marketing Inc.; PowerPlay Industries, LLC; 1166519075 Quebec Inc. d/b/a

Landshark Holdings Inc.; 1164047236 Quebec Inc. d/b/a Madicom Inc.; and Ari Tietolman and

issuing ancillary equitable relief contained herein.

H. Weighing the equities and considering the Plaintiff's likelihood of ultimate

success on the merits, the issuance of this temporary restraining order is in the public interest.

I. No security is required of any agency of the United States for issuance of a

restraining order. Fed. R. Civ. P. 65(c).

II.

DEFINITIONS

For purposes of this Preliminary Injunction ("Order"), the following definitions shall

apply:

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A. "Asset" or "Assets" means any legal or equitable interest in, right to, or claim to,

any real, personal, or intellectual property, including chattel, goods, instruments, equipment,

fixtures, general intangibles, effects, leaseholds, contracts, mail or other deliveries, shares or

stock, securities, inventory, checks, notes, accounts, credits, receivables (as those terms are

defined in the Uniform Commercial Code), insurance policies, lines of credit, cash, trusts

(including asset protection trusts), lists of consumer names and reserve funds or any other

accounts associated with any payments processed by, or on behalf of, any Defendant, including

such reserve funds held by payment processors, credit card processors, banks, or other financial

institution.

B. "Corporate Defendants" means First Consumers, LLC; Standard American

Marketing Inc.; PowerPlay Industries, LLC; 1166519075 Quebec Inc. d/b/a Landshark Holdings

Inc.; and 1164047236 Quebec Inc. d/b/a Madicom Inc., as well as any affiliates, subsidiaries,

successors, or assigns, and any fictitious business entities or business names created or used by

these entities, or any of them.

C. "Defendants" means the Individual Defendants and the Corporate Defendants,

individually, collectively, or in any combination.

D. "Document" or "Documents" means any materials listed in Federal Rule of

Civil Procedure 34(a) and includes, writings, drawings, graphs, charts, photographs, audio and

video recordings, computer records, digital records, and other data compilations from which

information can be obtained and translated, if necessary, into reasonably usable fonn through

detection devices. A draft or nonidentical copy is a separate document within the meaning of the

term.

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E. "Express Verifiable Authorization" means: (!)express written authorization

by the customer or donor, which includes the customer's cir donor's signature; (2) express oral

authorization which is audio-recorded and made available upon request to the customer or donor,

and the customer's or donor's bank or other billing entity, and which evidences clearly both the

customer's or donor's authorization of payment for the goods or services or charitable

contribution that are the subject of the telemarketing transaction and the customer's or donor's

receipt of all of the following information: (i) the number of debits, charges, or payments (if

more than one); (ii) the date(s) the debit(s), charge(s), or payment(s) will be submitted for

payment; (iii) the amount(s) of the debit(s), charge(s), or payment(s); (iv) the customer's or

donor's name; (v) The customer's or donor's billing information, identified with sufficient

specificity such that the customer or donor understands what account will be used to collect

payment for the goods or services or charitable contribution that are the subject of the

telemarketing transaction; (vi) a telephone number for customer or donor inquiry that is

answered during normal business hours; and (vii) the date of the customer's or donor's oral

authorization; or (3) written confirmation of the transaction, identified in a clear and conspicuous

manner as such on the outside of the envelope, sent to the customer or donor via first class mail

prior to the submission for payment ofthe customer's or donor's billing information, and that

includes all of the information contained in subsections 2(i) through 2(vii) of this definition and a

clear and conspicuous statement of the procedures by which the customer or donor can obtain a

refund from the seller or telemarketer or charitable organization in the event the confirmation is

inaccurate; provided, however, that this means of authorization shall not be deemed verifiable in

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instances in which goods or services are offered in a transaction involving a free-to-pay

conversion and preacquired account information.

F. "Financial Institution" means any bank, savings and loan institution, credit

union, or any financial depository of any kind, including, but not limited to, any brokerage

house, trustee, broker-dealer, escrow agent, title company, commodity trading company,

payment processor, independent sales organization, insurance company, or precious metal dealer.

G. "Individual Defendants" means Ari Tietolman, Marc Ferry, Charles W. Borie,

and Robert Barczai.

H. "Outbound Telephone Call" means a telephone call initiated by a telemarketer

to induce the purchase of goods or services or to solicit a charitable contribution.

I. "Plaintiff' or "Commission" or "FTC" means the Federal Trade Commission.

J. "Telemarketer" means any person who, in connection with telemarketing,

initiates or receives telephone calls to or from a customer or donor.

K. "Telemarketing" means any plan, program, or campaign conducted to induce the

purchase of goods or services or a charitable contribution by use of one or more telephones,

whether or not covered by the Telephone Sales Rule.

L. "Telemarketing Sales Rule" or "TSR" means the Telemarketing Sales Rule set

forth in 16 C.P.R. Part 310.

III.

PROHIBITION AGAINST MISREPRESENTATIONS AND VIOLATIONS OF THE TELEMARKETING SALES RULE

IT IS HEREBY ORDERED that Corporate Defendants and defendant Ari Tietolman, and

their officers, agents, servants, employees, and attorneys, and all other persons in active concert

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or participation with any of them, who receive actual notice of this Order by personal service or

otherwise, whether acting directly or indirectly, in connection with the telemarketing,

advertising, promotion, distribution, offering for sale, or sale of any good or service, are hereby

preliminarily restrained and enjoined from:

A. Misrepresenting, directly or indirectly, expressly or by implication, any material

fact including, but not limited to, the following:

I. That Defendants are contacting the consumer from, or on behalf of, or are

otherwise affiliated with, the consumer's bank, thrift, credit union, other

financial institution, or any government entity;

2. That consumers have previously authorized a transaction for Defendants'

purported products or services;

3. That Defendants will not treat consumers' disclosure of bank account

information to them as authorization to charge the consumers for

Defendants' purported products or services; or

4. That Defendants will not debit money from consumers' bank accounts.

B. Violating any provision of the Telemarketing Sales Rule, 16 C.F.R. Part 310,

including, but not limited to:

I. Section 31 0.3(a)(l)(ii), by failing to disclose truthfully in a clear and

conspicuous manner, before a customer pays for goods or services, all

material restrictions, limitations, or conditions to purchase, receive, or use

the goods or services that are the subject of the sales offer;

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2. Sections 31 0.3(a)(2)(i) and 31 0.3(a)(2)(vii), by misrepresenting, directly

or by implication:

a. The total costs to purchase, receive, or use, and the quantity of, any

goods or services that are the subject of a sales offer; or

b. A seller's or telemarketer' s affiliation with, or endorsement or

sponsorship by, any person or government entity;

3. Section 310.3(a)(3), by causing billing information to be submitted for

payment, or collecting or attempting to collect payment for goods or

services, directly or indirectly, without the customer's express verifiable

authorization, except when the method of payment used is a credit card

subject to the protections of the Truth in Lending Act, 15 U.S.C. § 1601 et

seq., and Regulation Z, 12 C.F.R. § 226, or a debit card subject to the

protections of the Electronic Funds Transfer Act, 15 U.S.C. § 1693 et seq.,

and Regulation E, 12 C.F.R. § 205; or

4. Section 310.4(a)(7), by causing billing information to be submitted for

payment, directly or indirectly, without the express informed consent of

the consumer.

IV.

PROHIBITION AGAINST UNAUTHORIZED BILLING

IT IS THEREFORE ORDERED that, in connection with the telemarketing, advertising,

promotion, distribution, offering for sale, or sale of any good or service, Corporate Defendants

and defendant Ari Tietolman, and their officers, agents, servants, employees, or attorneys, and

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any person or entity in active concert or participation with any of them, who receives actual

notice of this Order by personal service or otherwise, whether acting directly or through any

entity, corporation, subsidiary, division, affiliate, or other device, are hereby preliminarily

restrained and enjoined from,

1. Obtaining a consumer's bank account, credit card, or debit card

information without the consumer's prior express informed consent;

2. Billing, charging, or causing a consumer to be billed or charged, without

the consumer's prior express informed consent; or

3. Failing to clearly and conspicuously disclose before billing, charging, or

causing a consumer to be billed or charged, all material terms, conditions,

restrictions, or limitations to purchase, receive, or use the goods or

services that are the subject of the sales offer.

v.

PROHIBITION AGAINST COLLECTING PAYMENT

IT IS FURTHER ORDERED that Corporate Defendants and defendant Ari Tietolman,

and their officers, agents, servants, employees, attorneys, and all other persons in active concert

or participation with any of them, who receive .actual notice of this Order who receive actual

notice ofthis Order by personal service or otherwise, whether acting directly or indirectly, are

hereby preliminarily restrained and enjoined from attempting to collect, collecting, selling, or

assigning, or otherwise transferring any right to collect payment for any good or service, directly

or through any third party.

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VI.

PROHIBITION AGAINST USE OF CONSUMER INFORMATION


and their agents, servants, employees, attorneys, and all other persons in active concert or

participation with any of them, who receive actual notice of this Order by personal service or

otherwise, whether acting directly or indirectly, are hereby preliminarily restrained and enjoined

from:

A. Selling, renting, leasing, transferring, or otherwise disclosing the name, address,

birth date, telephone number, email address, Social Security number, Social

Insurance Number, credit or debit card number, bank account number, or other

financial or identifying personal information of any individual from whom or

about whom any Defendant obtained such information in connection with

activities alleged in the FTC's Complaint; or

B. Benefitting from or using the name, address, birth date, telephone number, email

address, Social Security number, Social Insurance number, credit or debit card

number, bank account number, or other financial or identifying personal

information of any individual from whom or about whom any Defendant

obtained such information in connection with activities alleged in the FTC's

Complaint;

Provided, however, that Corporate Defendants and defendant Ari Tietolman may disclose

such financial or identifying personal information to a law enforcement agency or as required by

any law, regulation, or court order.

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VII.

ASSET FREEZE

IT IS FURTIIER ORDERED that Corporate Defendants and defendant Ari Tietolman,

and their officers, agents, servants, employees, attorneys, and all other persons or entities in

active concert or participation with any of them, who receive actual notice ofthis Order by

personal service or otherwise, whether acting directly or indirectly, are hereby preliminarily

restrained and enjoined from:

A. Transferring, liquidating, converting, encumbering, pledging, loaning, selling,

concealing, dissipating, disbursing, assigning, spending, withdrawing, granting a

lien or security interest or other interest in, or otherwise disposing of, any funds,

real or personal property, accounts, contracts; shares of stock, lists of consumer

names, or other assets, or any interest therein, wherever located, including outside

the territorial United States, that are:

I. owned, controlled, or held by, in whole or in part, for the benefit of, or

subject to access by, or belonging to, any Defendant;

2. in the actual or constructive possession of any Defendant; or

3. in the actual or constructive possession of, or owned, controlled, or held

by, or subject to access by, or belonging to, any other corporation,

partnership, trust, or any other entity directly or indirectly owned,

managed, or controlled by, or under common control with, any Defendant,

inclt~ding, but not limited to, any assets held by or for any Defendant at

any bank, savings and loan institution, credit union, credit card processing

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agent, automated clearing house processor, network transaction processor,

bank debit processing agent, customer service agent, commercial mail

receiving agency, mail holding or forwarding company, retirement fund

custodian, money market or mutual fund, storage company, trustee,

broker-dealer, escrow agent, title company, commodity trading company,

precious metal dealer, or any other financial institution or other third

party, either within or outside the territorial United States.

B. Opening, causing to be opened, or otherwise accessing any safe deposit boxes,

commercial mail boxes, or storage facilities titled in the name of any Defendant,

or subject to access by any Defendant or under any Defendant's control, without

providing the Commission prior notice and an opportunity to inspect the contents

in order to determine that they contain no· assets covered by this Section;

C. Cashing any checks or depositing any payments from customers or clients of

Defendants; or

D. Incurring liens or encumbrances on real property, personal prope1ty, or other

assets in the name, singly or jointly, of any Defendant or any corporation,

partnership, or other entity directly or indirectly owned, managed, or controlled

by any Defendant.

Provided, however, the freeze imposed in this Section shall apply to: (I) assets existing

at the time of entry of this Order; and (2) any assets any Corporate Defendant and defendant Ari

Tietolman acquires following service of this Order only if such after-acquired assets are derived

from activity prohibited by this Order.

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VIII.

DISTRIBUTION OF ORDER BY CORPORATE DEFENDANTS AND DEFENDANT ARI TIETOLMAN

IT IS FURTHER ORDERED that Corporate Defendants and defendant Ari Tietolman

shall immediately provide a copy of this Order to each affiliate, subsidiary, division, sales entity,

successor, assign, officer, director, employee, independent contractor, agent, attorney, and

representative of Corporate Defendants and defendant Ari Tietolman, and shall, within forty-

eight ( 48) hours following service of this Order, provide the Commission with a sworn statement

that Corporate Defendants and defendant Ari Tietolman have complied with this provision of the

Order. The statement shall include the names and addresses of each such persons who received a

copy of the Order.

IX.

FINANCIAL STATEMENTS AND ACCOUNTING

IT IS FURTHER ORDERED that, within forty-eight (48) hours following service of this

Order:

A. Defendant Ari Tietolman shall prepare and deliver to counsel for the Commission

a completed financial statement on the form captioned "Financial Statement of

Individual Defendant," which is attached to this Order as Attachment A;

B. Each Corporate Defendant shall also prepare and deliver to counsel for the

Commission a completed "Financial Statement of Corporate Defendant," which is

attached to this Order as Attachment B;

C. For each business entity owued, controlled, or managed by defendant Ari

Tietolman, regardless of whether it is a defendant in this case, defendant Ari

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Tietolman shall also prepare and deliver to counsel for the Commission a

completed "Financial Statement of Corporate Defendant," which is attached to

this Order as Attachment B; and

D. Corporate Defendants and defendant Ari Tietolman shall also prepare and deliver

to counsel for the Commission:

1. A completed statement, verified under oath:

a. specifying the name and address of each financial institution at

which the Corporate Defendants and defendant Ari Tietolman have

accounts or safe deposit boxes. Said statements shall include

assets held within the United States as well as assets located

outside the territorial jurisdiction of the United States; and

b. listing all persons who have received payments, transfers, or

assigmnent of funds, property, or other assets totaling $1,000 or

more in any twelve-month period since January 1, 2006. This list

shall specify: (a) the amount(s) transferred or assigned; (b) the

name of each transferee or assignee; (c) the date of the assignment

or transfer; and (d) the type and amount of consideration, if any,

paid to the Corporate Defendants and defendant Ari Tietolman;

and

2. For each service, product, or program advertised, marketed, promoted,

offered for sale, or sold by Corporate Defendants and defendant Ari

Tietolman, a detailed accounting, verified under oath, of:

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a. the total amount of sales for each such service, product, or progra.m

(broken down by month and year) from January 1, 2006, through

the date of the issuance of this Order;

b. the gross revenues obtained from the sale of each such service,

product, or program (broken down by month and year) from

January I, 2006, through the date of the issuance of this Order;

c. all net profits obtained from the sale of each such service, product,

or program (broken down by month and year) from January I,

2006, through the date of the issuance of this Order; and

d. the full names, addresses, emails, and telephone numbers of all

purchasers or recipients of each such service, product, or program,

and the amount paid by each from January I, 2006, through the

date ofthe issuance of this Order.

Provided, however, that Corporate Defendants and defendant Ari Tietolman do not have

to provide any such information identified by this Section if (1) Corporate Defendants and

defendant Ari Tietolman have already provided such information pursuant to Section IX of the

Temporary Restraining Order; and (2) the information provided has not changed.

X.

REPATRIATION OF ASSETS AND DOCUMENTS


shall:

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A. Within forty-eight (48) hours following service of this Order, take such steps as

are necessary to repatriate to the territory of the United States all documents and

assets that are located in a country other than the United States and are held by or

for Corporate Defendants and defendant Ari Tietolman, or are under Corporate

Defendants' and defendant Ari Tietolman' s direct or indirect control, jointly,

severally, or individually;

B. Within forty-eight (48) hours following service of this Order, provide Plaintiff

with a full accounting of all documents and assets that are located outside of the

territory of the United States that have been transferred to the territory of the

United States pursuant to Subsection A above and are held by or for any

Corporate Defendants and defendant Ari Tietolman or are under Corporate

Defendants' and defendant Ari Tietolman's direct or indirect control, jointly,

severally, or individually, including the addresses and names of any foreign or

domestic financial institution or other entity holding the documents and assets,

along with the account numbers and balances;

C. Hold and retain all such documents and assets and prevent any transfer,

disposition, or dissipation whatsoever of any such documents or assets; and

D. Within forty-eight ( 48) hours following service of this Order, provide Plaintiff

access to Corporate Defendants' and defendant Ari Tietolman's records and

documents held by financial institutions or other persons outside the territorial

United States, by signing and delivering to Plaintiff's counsel the Consent to

Release of Financial Records attached to this Order as Attachment C.

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Provided, however, that Corporate Defendants and defendant Ari Tietolman do not have

to provide the accounting or signed Consent to Release Financial Records ("Release") identified

by this Section if (1) Corporate Defendants and defendant Ari Tietolman have already provided

such accounting and signed Release pursuant to Section X of the Temporary Restraining Order;

and (2) the information provided in the accounting or Release has not changed.

XI.

NONINTERFERENCE WITH REPATRIATION


and their officers, agents, servants, employees, attorneys, and all other persons or entities in

active concert or participation with any of them, who receive actual notice of this Order by

personal service or otherwise, whether acting directly or indirectly, are hereby preliminarily

restrained and enjoined from taking any action, directly or indirectly, which may hinder the

repatriation required by Section X of this Order, including:

A. Transferring any funds held in a foreign account to an account or recipient other

than one designated by the Federal Trade Commission;

B. Dissipating the foreign assets or hindering the repatriation of foreign assets in any

way;

C. Sending any statement, letter, fax, email, or wire transmission, telephoning, or

engaging in any other act, directly or indirectly, that results in a determination by

a foreign trustee or other entity that a "duress" event has occurred under the terms

of a foreign trust agreement until such time that all assets have been fully

repatriated pursuant to Section of this Order; and

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D. Notifying any trustee, protector, or other agent of any foreign trust or other related

entities of either the existence of this Order, or of the fact that repatriation is

required pursuant to a court order, until such time that all Corporate Defendants'

and defendant Ari Tietolman's assets have been fully repatriated pursuant to

Section X of this Order.

XII.

PRESERVATION OF RECORDS


and their officers, agents, servants, employees, attorneys, and all persons or entities directly or

indirectly under their control or under common control with them, and all other persons in active

concert or participation with them who receive actual notice of this Order, are hereby

preliminarily restrained and enjoined from destroying, erasing, mutilating, concealing, altering,

transferring or otherwise disposing of, in any manner, directly or indirectly, any documents that

relate to the business practices or business or finances of any of the Defendants, and to the

business practices of entities that are directly or indirectly under control of any of the

Defendants, or under common control with any of the Defendants. Any third party having such

documents in its possession, custody, or control, and which is served with a copy of this Order,

or otherwise has actual or constructive knowledge of this Order, is also restrained and enjoined

from destroying, erasing, mutilating, concealing, altering, transferring or otherwise disposing of,

in any manner, directly or indirectly, such documents. This Section specifically applies to all

documents displayed on or accessible from any Internet website owned or controlled by

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Defendants, including but not limited to the following domain names: trustoneservices.com;

myfraudwatch.com; consumersfirst.info; legaleyenetwork.com; and patientassistanceplus.com.

XIII.

ACCESS TO BUSINESS RECORDS


shall, within twenty-four (24) hours of service of this Order, produce to the Commission at the

Federal Trade Commission, 600 Pennsylvania Avenue NW, Stop M-8102B, Washington DC

20580, via FedEx or other courier service acceptable to the Commission, or at another location

acceptable to the Commission, for inventory and copying: (1) all computers, computerized files,

storage media (including but not limited to, hard drives, DVDs, CD-ROMs, zip disks, floppy

disks, punch cards, magnetic tape, backup tapes, and computer chips) on which information has

been saved and all equipment needed to read any such material; (2) all solicitations, advertising,

classified listings, telemarketing scripts, and automated or prerecorded messages played for

consumers; (3) all correspondence with consumers, including but not limited to requests for

payment and billing letters, equipment delivery receipts, cancellation requests, consumer

complaints and responses; written contracts, and signed declarations of consumer consent; (4) all

recordings of telephone conversations, and all notes or records recounting or relating to

telephone conversations; (5) all consumer identification or financial information obtained

through or as a result of solicitations, telemarketing, correspondence, or other sources, including

but not limited to lead providers and generators, and independent sales organizations; (6)

identification and contact information for all employees and independent contractors since

January 1, 2006, including but not limited to telemarketing sales personnel; (7) all training

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materials for employees and independent contractors; (8) accounting information, including but

not limited to profit and loss statements, annual reports, receipt books, ledgers, personal and

business canceled checks and check registers, bank statements, appointment books, copies of

federal, state, or local business or personal income or property tax returns, and I 099 forms since

2006; and (9) other documents or records of any kind that relate to any business practice of

Defendants, including but not limited to all documents filed by Defendants or their

Representatives with any federal, state, or local government agency or institution in connection

with the marketing of goods or services.

Provided, however, that if Corporate Defendants and defendant Ari Tietolman provide

any business records covered by this Section to any federal or Canadian law enforcement agency

(including, but not limited to, the Federal Bureau of Investigation and the Royal Canadian

Mounted Police) before receiving service of this Order, Corporate Defendants and defendant Ari

Tietolman shall produce such records to the Commission within twenty-four (24) hours after the

federal or Canadian law enforcement agency returns the records to Corporate Defendants and

defendant Ari Tietolman.

Provided further that Corporate Defendants and defendant Ari Tietolman do not have to

provide any such business records covered by this Section if (I) Corporate Defendants and

defendant Ari Tietolman have already provided such records pursuant to Section XIII of the

Temporary Restraining Order; and (2) the records provided have not changed.

The Commission shall return produced materials pursuant to this Section within seven (7)

days of completing said inventory and copying.

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XIV.

DUTIES OF FINANCIAL INSTITUTIONS AND OTHER THIRD PARTIES

IS FURTHER ORDERED that any financial institution, business entity, or other person

maintaining or having custody or control of any account, other asset, or documents of Corporate

Defendants and defendant Ari Tietolman, or any corporation, partnership, or other entity directly

or indirectly owned, managed, or controlled by, or under common control with, Corporate

Defendants and defendant Ari Tietolman, which is served with a copy of this Order, or otherwise

has actual or constructive knowledge of this Order, shall:

A. Hold and retain within its control and prohibit the withdrawal, removal,

assignment, transfer, pledge, hypothecation, encumbrance, disbursement,

dissipation, conversion, sale, liquidation, destruction, or other disposal of any of

the assets, funds, documents, or other property held by, or under its control:

I. on behalf of, or for the benefit of, Corporate Defendants and defendant Ari

Tietolman or any other party subject to Section VII above;

2. in any account maintained in the name of, or for the benefit of, or subject

to withdrawal by, Corporate Defendants and defendant Ari Tietolman or

other party subject to Section VII above; or

3. that are subject to access or use by, or under the signatory power of,

Corporate Defendants and defendant Ari Tietolman or other party subject

to Section VII above.

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B. Deny Corporate Defendants and defendant Ari Tietolman, unless accompanied by

a representative of the Commission, access to any safe deposit boxes or storage

facilities that are either:

1. titled in the name, individually or jointly, of Corporate Defendants and

defendant Ari Tietolman, or other party subject to Section VII above; or

2.. otherwise subject to access by Corporate Defendants and defendant Ari

Tietolman or other party subject to Section VII above.

C. Provide the Commission, within three (3) days of the date of service of this Order,

a sworn statement setting forth:

I. the identification number of each account or other asset titled in the name

of Corporate Defendants and defendant Ari Tietolman, or held on behalf

of, or for the benefit of, Corporate Defendants and defendant Ari

Tietolman or other party subject to Section VII above, including all trust

accounts managed on behalf of Corporate Defendants and defendant Ari

Tietolman or subject to Corporate Defendants' and defendant Ari

Tietolman's control;

2. the balance of each such account, or a description of the nature and value .

of such asset as of the time this Order is served;

3. the identification and location of any safe deposit box, commercial mail

box, or storage facility that is either titled in the name of Corporate

Defendants and defendant Ari Tietolman, or is otherwise subject to access

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or control by Corporate Defendants and defendant Ari Tietolman or other

party subject to Section VII above, whether in whole or in part; and

4. if the account, safe deposit box, storage facility, or other asset has been

closed or removed, the date closed or removed and the balance on said

date.

D. If not already done in compliance with Section XIV of the Temporary Restraining

Order in this matter, allow representatives of Plaintiff immediate access to inspect

and copy, or upon Plaintiffs request, within forty-eight ( 48) hours of said request,

provide the Commission with copies of, all records or other documents pertaining

to each such account or other asset, including, but not limited to, originals or

copies of account applications, account statements, corporate resolutions,

signature cards, checks, drafts, deposit tickets, transfers to and from the accounts,

all other debit and credit instruments or slips, currency transaction reports, I 099

forms, and safe deposit box logs.

XV.

SERVICE UPON FINANCIAL INSTITUTIONS AND OTHER TIITRD PARTIES

IT IS FURTHER ORDERED that copies of this Order may be served by any means,

including facsimile, U.S. first class mail, private courier, overnight delivery, email, other

electronic means, or personally, by agents or employees of Plaintiff, by any law enforcement

agency, or by private process server, upon any financial institution, other entity, or person that

may have possession, custody, o~ control of any account, other asset, or document identified in

Section VII above, or that may be otherwise subject to any provision of this Order. Service upon

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any branch or office of any financial institution shall effect service upon the entire financial

institution. For purposes of service upon anyone in possession of documents or assets subject to

this Order, actual notice of this Order shall be deemed to have been provided upon service of

pages I through 29 of this Order.

XVI.

RECORDS MAINTENANCE AND NEW BUSINESS ACTIVITY.


and their officers, agents, servants, employees, and attorneys, and all other persons in active

concert or participation with any of them, who receive actual notice of this Order by personal

service or otherwise, whether acting directly or indirectly, are hereby preliminarily restrained and

enjoined from:

A. Failing to create and maintain books, records, accounts, bank statements, current

accountants' reports, general ledgers, general journals, cash receipt ledgers, cash

disbursement ledgers and source documents, documents indicating title to real or

personal property, and any other data which, in reasonable detail, accurately,

fairly and completely reflect the incomes, disbursements, transactions,

dispositions, and uses of Corporate Defendants' and defendantAri Tietolman's

assets;

B. Destroying, erasing, mutilating, concealing, altering, transferring, or otherwise

disposing of, in any manner, directly or indirectly, any documents, including

electronically-stored materials, that relate in any way to the business practices or

business or personal finances of Defendants; to the business practices or finances

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of entities directly or indirectly under the control of Defendants; or to the business

practices or finances of entities directly or indirectly under common control with

any other Defendant; or

C. Creating, operating, or exercising any control over any new business entity,

whether newly formed or previously inactive, including any partnership, limited

partnership, joint venture, sole proprietorship, or corporation, without first

providing Plaintiff with a written statement disclosing: (I) tbe name of the

business entity; (2) tbe address and telephone number of tbe business entity; (3)

the names of the business entity's officers, directors, principals, managers, and

employees; and (4) a detailed description of the business entity's intended

activities.

XVII.

NONINTERFERENCE WITH CONSUMER WITNESSES


and their officers, agents, servants, employees, and attorneys, and all other persons in active

concert or participation with any of them, who receive actual notice of this Order by personal

service or otherwise, whether acting directly or indirectly, are hereby preliminarily restrained and

enjoined from taking any action, directly or indirectly, that may result in the intimidation or

noncooperation of consumer witnesses.

XVIII.

EXPEDITED DISCOVERY

IT IS FURTHER ORDERED that pursuant to Federal Rules of Civil Procedure 30(a),

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3l(a), 34, and 45, and notwithstanding the provisions of Federal Rules of Civil Procedure

26(d) and (f), 30(a)(2)(A), and 3l(a)(2)(A), Plaintiff is granted leave, at any time after entry of

this Order to:

A. Take the deposition of any person, whether or not a party, for the purpose of

discovering the nature, location, status, and extent of the assets of Corporate

Defendants and defendant Ari Tietolman, and Corporate Defendants' affiliates

and subsidiaries; the nature and location of documents reflecting the business

transactions of Corporate Defendants and defendant Ari Tietolman, and Corporate

Defendants' affiliates and subsidiaries; the location of any premises where

Corporate Defendants and defendant Ari Tietolman, directly or through any third

party, conduct business operations; the Corporate Defendants' and defendant-Ad

Tietolman's whereabouts; and/or the applicability of any evidentiary privileges to

this action; or

B. Demand the production of documents from any person, whether or not a party,

relating to the nature, status, and extent of the assets of Corporate Defendants and

defendant Ari Tietolman, and Corporate Defendants' affiliates and subsidiaries;

the nature and location of documents reflecting the business transactions of

Corporate Defendants and defendant Ari Tietolman, and Corporate Defendants'

affiliates and subsidiaries; the location of any premises where Corporate

Defendants and defendant Ari Tietolman, directly or through any third party,

conduct business operations; the Corporate Defendants and defendant Ari

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Tietolman's whereabouts; and/or the applicability of any evidentiary privileges to

this action.

Thirty-six (36) hours notice shall be deemed sufficient for any such deposition, forty-eight (48)

hours notice shall be deemed sufficient for the production of any such documents, and twenty

four (24) hours notice shall be deemed sufficient for the production of any such documents that

are maintained or stored only as electronic data. The provisions of this Section shall apply both

to parties to this case and to non-parties. The limitations and conditions set forth in Federal

Rules of Civil Procedure 30(a)(2)(B) and 31 (a)(2)(B) regarding subsequent depositions of an

individual shall not apply to depositions taken pursuant to this Section. Any such depositions

taken pursuant to this Section shall not be counted toward any limit on the number of depositions

under the Federal Rules of Civil Procedure including those set forth in Federal Rules of Civil

Procedure 30(a)(2)(A) and 3l(a)(2)(A) or the Local Civil Rules of the United States District

Court for the Eastern District of Pennsylvania. For purposes of discovery pursuant to this

Section of the Order, service shall be sufficient if made by facsimile or by overnight courier.

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XIX.

CORRESPONDENCE WITH AND NOTICE TO PLAINTIFF

IT IS FURTHER ORDERED that, for the purpose of this Order, all correspondence and

service of pleadings on the FTC shall be sent either via electronic transmission or via FedEx to:

David R. Spiegel Boris Y ankilovich Arturo DeCastro Federal Trade Commission 600 Pennsylvania Avenue, NW Washington, DC 20580 (206) 326-3281 [telephone] (202) 326-2558 [facsimile] [email protected] [email protected] [email protected]

XX.

CONSUMER REPORTING AGENCIES

IT IS FURTHER ORDERED that, pursuant to Section 604 of the Fair Credit Reporting

Act, 15 U.S.C. § 1681 b, any consumer reporting agency which is served with a copy of this

Order, or otherwise has actual or constructive knowledge of this Order, shall, upon request of

Plaintiff, provide to Plaintiff a consumer or credit report concerning Corporate Defendants and

defendant Ari Tietolman.

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XXI.

RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for

all purposes. ~

DATED thi~day of~. 2014, at /.'~'clock,-Mvt+PM.

DGE

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